Bitcoin failed to break through key resistance levels over the weekend, dropping nearly 5% in just three hours on Sunday.
According to Tradingview, the asset traded around $91,500 for much of the weekend and appeared to be consolidating toward the end of the month, but Coinbase says it suddenly dropped to $86,950.
According to Tradingview, Bitcoin (BTC) ended the week at $90,411, down almost 5% following its first green weekly close in four weeks.
“As we have seen many times this year, Friday night and Sunday night are often accompanied by large movements in cryptocurrencies,” Kobeissi Letter said, adding that this downturn occurred without any obvious news trigger.
BTC dumped $4,500 in Sunday’s massacre. sauce: TradingView
More leverage liquidated
Kobessi blamed the flash crash on the fact that “the sudden spike in selling triggered a domino-like selloff that was only amplified by the liquidation of historic amounts of leveraged positions.”
“This crypto ‘bear market’ remains structural in nature. We do not believe this is a fundamental decline.”
Related: Bitcoin 2022 Bear Market Correlation Hits 98% as ETF Adds $220M
CoinGlass reported that over 180,000 traders were liquidated in the past 24 hours, with a total liquidation amount of $539 million, with the majority taking place in the past few hours. Almost 90% of these liquidations were long positions, primarily in BTC and Ether (ETH).
Worst November since 2018
According to Coinglass, Bitcoin had its worst month of the year, with its worst November performance since 2018, ending the month down 17.49%. In November 2018, the asset fell 36.57% during a brutal bear market.
Analyst Sycodelic remained bullish, saying, “This month is off to a really great start.”
He said there was no pump on Sunday and the gap on CME has already narrowed, with $400 million long already taken. “The downside liquidity was blown out first. That’s what we’re hoping for.”
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